Coach 2Q Beats Street on Worldwide Sales Growth

By RetailFOXBusiness

Coach (NYSE:COH) revealed a 15% increase in second-quarter profit on Tuesday as holiday sales surged both domestically and abroad and its newer men’s business continued to grow.

The New York-based designer handbag and accessories maker earned $347 million, or $1.18 a share, compared with $303 million, or $1.00, in the year-earlier period. The results trumped average analyst estimates in a Thomson Reuters poll of $1.15.

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Revenue for the three months ended Dec. 31 was $1.45 billion, up 15% from $1.26 billion a year ago, just beating the Street’s view of $1.43 billion. Those gains were led by a 17% increase in direct-to-consumer sales and 8.8% improvement in North American comparable store sales.

“We were especially pleased with our ongoing strength in North America during the holiday season,” Coach CEO Lew Frankfort said in a statement. “This growth indicates that we are continuing to increase our share of an expanding U.S. accessories market.”

The company said its directly-operated businesses in China are “growing nicely,” with the help of “excellent gains” in China, which is on track to generate at least $300 million in sales this year. Coach took control of its domestic retail business in Taiwan last quarter and will acquire its Malaysian business in July.

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Coach has also predicted its men’s business will double in fiscal 2012 to more than $400 million globally. The success of Coach Men’s has underscored the company’s plan to expand the brand through new locations and existing real estate.

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